India's food inflation rate rises to 10.86 %

India's food inflation rate rose to 10.86 per cent in the year to August 21 from 10.05 per cent in the previous week and remained in double-digit territory for the fourth week running, an official statement, quoting provisional data, showed.

The return of the food inflation rate to double digit levels last week after two weeks in single digit territory came at a time when the Government was facing a steady attack from the Opposition on the issue of rising food and fuel prices.

High prices of food items have been a cause of worry for the Government since the worst monsoon in more than three decades last year and floods in some states adversely affected the Kharif crop.

According to the figures released today, the prices of pulses were up 14.12 per cent from a year ago, milk by 18.22 per cent, fruits by 9.27 per cent, rice by 8.05 per cent, wheat by 7 per cent and cereals by 6.76 per cent.

Potatoes, on the other hand, were down by 51.25 per cent, vegetables by 9.90 per cent and onions by 8.97 per cent, the statement said.

Overall, the annual rate of inflation for Primary Articles, which have a weight of 22.02 per cent in the Wholesale Price Index (WPI), stood at 15.19 per cent for the week ended August 21 as compared to 14.75 per cent for the previous week and 8.87 per cent during the corresponding week, ended August 22, 2009, of the previous year.

The index for this major group rose by 1.4 per cent to 312.5 from 308.1 for the previous week, the provisional data said.

Within this group, the index for Food Articles rose by 1.8 per cent to 303.3 from 297.9 for the previous week due to higher prices of fish-inland (22%), fruits & vegetables (4%) and gram (1%). However, the prices of moong and eggs (2% each) and masur (1%) declined.

The index for Non-Food Articles rose by 0.4 per cent to 291.7 from 290.6 for the previous week due to higher prices of raw silk (2%) and groundnut seed, raw cotton, copra and rape & mustard seed (1% each). However, the prices of castor seed (3%), raw rubber (2%) and gingelly seed (1%) declined.

The index for Minerals rose by 1.4 per cent to 867.5 from 855.2 for the previous week due to higher prices of fluorite (3%) and barytes and iron ore (2% each). However, the prices of steatite (26%), asbestos (21%) and feldspar (4%) declined.

In the case of Fuel, Power, Light & Lubricants, which have a weight of 14.23 per cent in the WPI, the index rose by 0.2 per cent to 386.7 from 385.9 for the previous week due to higher prices of light diesel oil, furnace oil and aviation turbine fuel (2% each) and naphtha (1%). However, the prices of bitumen (1%) declined.

The annual rate of inflation for this category stood at 12.71 per cent for the week as compared to 12.57 per cent for the previous week and 8.87 per cent during the corresponding week of the previous year, the statement added.

NNN